Rising policy risks and declining industry confidence threaten U.S. residential solar growth, but reliable global suppliers offer solutions to ensure stability and long-term resilience.
In the first half of 2025, U.S. residential solar prices held steady at $2.48 per watt despite high interest rates and uncertain policies, according to EnergySage’s latest report.
Solar growth faces challenges, but with the right perspective, opportunities remain strong.
Why U.S. Residential PV Prices Are Holding Steady
Despite economic headwinds, U.S. residential solar installers have maintained pricing stability. According to EnergySage, the median price for solar-only systems rose by just 0.4%, while solar-plus-storage systems showed no change at all. This translates into an average 11.7 kW system costing $29,016 before incentives.
The reason behind this stability lies in how installers are absorbing financing costs. With interest rates remaining high, fewer customers are willing to commit to long-term financing. Instead of raising prices, installers have kept pricing consistent to avoid losing customers. While this demonstrates resilience, it also reflects squeezed margins that may impact long-term sustainability.
For a Solar Energy Equipment Manufacturer in China like USFULL, this presents both challenges and opportunities. Installers under pressure will increasingly seek suppliers who can deliver cost-effective yet high-quality components such as DC Circuit Breakers, DC Surge Protection Devices, Combiner Boxes, and DC Fuses.
Industry Confidence Falters Amid Policy Changes
While prices are stable, industry confidence is declining. EnergySage’s survey revealed that 55% of contractors feel less confident than last year, and 45% report weaker consumer demand. The primary factor driving this concern is the removal of the 30% federal tax credit for customer-owned residential systems under the new “One, Big, Beautiful Bill” (OBBB).
For U.S. households, affordability has always been the top motivation, with 73% citing cost savings as their main driver for adopting solar. The removal of tax credits directly undermines this value proposition. EnergySage reported that 92% of contractors believe this policy change will harm their businesses, with two-thirds expecting “dramatic harm.”
At the same time, tariffs on imported solar equipment are adding further uncertainty. Over 70% of contractors foresee negative business impacts from tariffs, and nearly 20% fear these measures will “dramatically harm” their operations.
This is where Solar Energy Equipment Suppliers from stable manufacturing hubs, particularly China, come into play. By offering certified, cost-competitive, and high-reliability components, they can help U.S. installers offset policy-driven disadvantages.
How Global Suppliers Can Support the U.S. Market
For international partners, especially a Solar Energy Equipment Manufacturer in China, the U.S. market remains critical despite short-term turbulence.Key areas where global suppliers can provide value include:
Cost Competitiveness – By leveraging efficient production and economies of scale, overseas manufacturers can help U.S. installers maintain stable end-user pricing.
Reliable Delivery – Logistics delays and missed project deadlines harm customer trust. A strong supply chain and consistent production capacity reduce risks.
Comprehensive Solutions – Beyond single components, suppliers who offer full solutions—like Combiner Boxes, DC Circuit Breakers, DC Fuses, and Surge Protection Devices—simplify procurement and integration for U.S. partners.
This support ensures that even as tax credits fade, contractors can still compete by emphasizing long-term value and reliability.
The Role of Solar Energy Equipment in Sustaining Growth
As the U.S. residential solar market adapts, the role of solar energy equipment becomes even more critical. Each component contributes to safety, efficiency, and long-term system reliability:
DC Circuit Breaker – Protects circuits from overcurrent and prevents damage to equipment.
DC Surge Protection Device (SPD) – Shields systems from lightning or transient voltage surges.
Combiner Box – Consolidates multiple string inputs into a single output while enabling system protection.
DC Fuse – Provides overcurrent protection to ensure system longevity and safety.
Consumers and installers increasingly demand equipment that not only meets technical specifications but also holds trusted certifications. For a Solar Energy Equipment Supplier, offering products with verified performance reports is the key to building lasting partnerships in sensitive markets like the U.S.
Long-Term Outlook: Risks and Opportunities
Research by Wood Mackenzie aligns with EnergySage’s findings, predicting a slowdown in the U.S. residential solar market over the next four years without the federal tax credit. However, both organizations agree that residential solar will remain an essential part of the U.S. energy mix in the long term.
This reflects a broader trend: while short-term policies create volatility, the long-term fundamentals of solar—cost competitiveness, energy independence, and sustainability—remain solid. As such, the industry will continue to expand globally, with U.S. adoption regaining momentum once market conditions stabilize.
For suppliers, the lesson is clear: those who build resilience now, through quality, trust, and reliable supply, will be best positioned to benefit when growth accelerates again.
The U.S. residential solar market in 2025 is at a crossroads: prices remain stable, but industry confidence is shaken by policy changes and tariffs. While contractors fear lost incentives and reduced demand, opportunities remain for those who adapt strategically.
For global partners, especially Solar Energy Equipment Manufacturers in China, this is the time to step up. By offering cost-effective, certified, and reliable solutions, suppliers like USFULL can help U.S. installers weather today’s challenges and build toward tomorrow’s growth.
